Indika turns to gold, electric bikes in shift away from coal

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PT Indika Energy is scaling up investment in electric vehicle, logistics and gold mining in a gradual shift away from coal after making a fortune from surging prices of the fossil fuel.

The Indonesian miner, which posted a 1500% jump in net income in the first half, will stop investing in coal and is spending $600 million to have non-coal businesses account for half of its revenue in three years, from less than 20% currently, Group CEO Aziz Armand said in an interview Wednesday.

Indika joins other miners in Indonesia, the world’s biggest thermal coal exporter, in expanding into clean energy amid a global push to end the use of the dirtiest fuel. PT Adaro Energy said in April it was shifting to renewable energy using the windfall profits generated from surging coal prices.

“The world’s challenge is not about economy and geopolitics but also about climate change,” Armand said. “With the global energy crisis, coal prices are good now, but will that persist for the next five or 10 years?”

Shares of Indika Energy have risen nearly 90% this year, in line with other Indonesian coal miners.

(By Fathiya Dahrul)

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